International trade in services : The issue of market presence and right of establishment

Balasubramanyam, V.N. (2019) International trade in services : The issue of market presence and right of establishment. In: Electronic Highways for World Trade : Issues in Telecommunication and Data Services. Routledge, London, pp. 131-153. ISBN 9780367013271

Abstract

The origins of the debate on presence and right of establishment are to be traced to the continuing discussion on what constitutes a service as distinct from a good. This chapter provides an analysis of the issues of 'market presence' and 'right of establishment' of foreign firms frequently alluded to but rarely elaborated on in literature on trade in services. It analyzes the concepts of 'presence' and 'right of establishment'. The chapter discusses the issues of 'presence' and 'establishment' in the context of international trade in general. It explores the issues in the context of liberalization of trade in services. The chapter focuses on the implications of the growth in information-technology industries and trans-border data flows for the issue of 'presence' and 'establishment'. 'Market presence' is a somewhat amorphous concept. It lies mid-way between pure trade and foreign direct investment. It is worth noting that goods and services are both produced by factors of production. © 1989 by The Atwater Institute. All rights reserved.